Correlation Between CNPC Capital and Tianjin Pengling
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By analyzing existing cross correlation between CNPC Capital Co and Tianjin Pengling Rubber, you can compare the effects of market volatilities on CNPC Capital and Tianjin Pengling and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CNPC Capital with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNPC Capital and Tianjin Pengling.
Diversification Opportunities for CNPC Capital and Tianjin Pengling
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CNPC and Tianjin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CNPC Capital Co and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and CNPC Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CNPC Capital Co are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of CNPC Capital i.e., CNPC Capital and Tianjin Pengling go up and down completely randomly.
Pair Corralation between CNPC Capital and Tianjin Pengling
Assuming the 90 days trading horizon CNPC Capital Co is expected to generate 1.28 times more return on investment than Tianjin Pengling. However, CNPC Capital is 1.28 times more volatile than Tianjin Pengling Rubber. It trades about 0.17 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.15 per unit of risk. If you would invest 500.00 in CNPC Capital Co on September 6, 2024 and sell it today you would earn a total of 243.00 from holding CNPC Capital Co or generate 48.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CNPC Capital Co vs. Tianjin Pengling Rubber
Performance |
Timeline |
CNPC Capital |
Tianjin Pengling Rubber |
CNPC Capital and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNPC Capital and Tianjin Pengling
The main advantage of trading using opposite CNPC Capital and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNPC Capital position performs unexpectedly, Tianjin Pengling can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.CNPC Capital vs. Kweichow Moutai Co | CNPC Capital vs. G bits Network Technology | CNPC Capital vs. Contemporary Amperex Technology | CNPC Capital vs. BYD Co Ltd |
Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Xinke Material | Tianjin Pengling vs. Guangzhou Tinci Materials | Tianjin Pengling vs. Hua Xia Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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